Emergent Capital Markets’ Efficiency: the Case of Poland

Abstract

We apply two well-known technical indicators to the Polish Stock index over the period of 9/4/1998 to 4/18/2013. Our findings support the predictive power of technical trading rules for each sub-period and for the entire period. We then ask whether an investor can use the predictive power of technical analysis to beat the profitability of the buy-and-hold strategy considering both transaction costs and risk. We conclude that it is not possible to beat the buy and hold strategy when considering transaction costs and risk. We could say the Polish market is efficient.

Profitability of The Moving Averages Technical Trading Rules in an Emerging Stock Market-A Study of Individual Stocks Listed On Pakistan Stock Exchange

“…Pring (2014) defined the technical analysis as the craft of distinguishing pattern changes at a beginning period and to keep up a venture or exchanging stance until the point that the heaviness of the proof demonstrates that the pattern has turned around. In this examination we use moving average which is a really fundamental procedure for conducting technical analysis; experts at first used charts with the movement of time all the more computationally difficult and systematic pointers have created to envision the future market prices in perspective of undeniable market data (Metghalchi et al, 2014). The idea of efficient market hypothesis demonstrates that all the data identified with the security is inserted in its reasonably assessed market value.…”